This information is such that Inwido AB (publ) is obliged to publish
in
accordance with the EU market abuse regulation. The information was
submitted by
the below contact persons for publication on 23 October 2018 at
7:45 a.m. CET.

Better third quarter than last year

Third quarter of 2018

  ·
Net sales rose to SEK 1,682 million (1,559), representing an increase
of
8 percent. Organic growth was a negative 1 percent
  · EBITA increased to
SEK 200 million (172) after items affecting comparability
of a negative
SEK 2 million (0), and the EBITA margin grew to 11.9 percent
(11.0)
  ·
Operating EBITA rose to SEK 202 million (172) and the operating EBITA
margin
rose to 12.0 percent (11.0)
  · Earnings per share before dilution
increased to SEK 2.31 (1.85)
  · The acquisition of Profin in Finland was
completed on 2 July
  · Most of the Group’s loans were refinanced
  · New
governance model for the Inwido Group effective from 1 January 2019 –
full
responsibility for operations and profit for each subsidiary

January-September
2018

  · Net sales rose to SEK 4,802 million (4,597), representing an increase
of
4 percent. Organic growth was a negative 2 percent
  · EBITA amounted to
SEK 420 million (446) after items affecting comparability
of a negative
SEK 22 million (negative 2), and the EBITA margin was 8.7 percent
(9.7)
  ·
Operating EBITA amounted to SEK 442 million (448) and the operating
EBITA
margin was 9.2 percent (9.7)
  · Earnings per share before dilution
increased to SEK 5.16 (4.65)
The CEO comments:
"Inwido’s third quarter
progressed largely as expected. It is gratifying to note
that 25 of Inwido’s 29
profit units performed better this quarter than in 2017,
which is also
reflected in operating profit having increased to SEK 202 million
in the
quarter. This shows that the effort we have invested in various
initiatives in
recent years, such as increased cost control, has had the desired
effect.
However, we are not satisfied with a few of the larger units’ earnings.

Sales
increased by 8 percent compared with the corresponding period last year,
to
SEK 1,682 million. Organically, sales decreased by 1 percent. The
operating
EBITA margin increased to 12 percent, compared with 11 percent in
the
corresponding period the preceding year.

The warm summer in the Nordic
region generally dampened consumers’ eagerness to
buy, which led to increased
competition in the windows industry and thereby
pressure on gross margins. The
Industry market has also cooled, with fewer
construction projects starting and
fewer permits being issued. Inwido has coped
with the market situation
relatively well. Adjusted for acquisitions, order
bookings decreased by
2 percent, and when also adjusted for currency effects,
order bookings were
7 percent lower.

It is also worth mentioning that the Group’s indebtedness
decreased during the
period, despite the acquisition of Profin, which is
positive, particularly in
generating opportunities for further acquisitions.
The acquisitions we have made
in recent years continue to develop well,
contributing to Inwido’s development.

Differing market situations – e-commerce
growing increasingly important
Denmark is progressing very strongly, Poland has
shifted to profitability, and
both the UK and Ireland are currently developing
well, although uncertainty has
increased in the UK with the Brexit
negotiations. During the year, Norway has
become profitable. Inwido’s
e-commerce continues to increase sharply, with
reported sales in this unit
increasing by 45 percent during the quarter.

It is in Sweden and Finland in
particular that the windows market is arduous,
with increased competition and
lower market prices. In Sweden, lower housing
prices and fewer sales of homes
have increased the pressure on all actors, at
the same time as digitalization
is driving changes in customer and consumer
behaviours. We are tackling this
trend with a series of initiatives. One example
is the “Elitfönster På Plats”
concept, in which consumers can buy Sweden’s most
popular window brand and
receive installation assistance. We also offer
accessories and spare parts
through Elitfönster’s online shop, investing in the
brand while aiding
builders’ merchants and carpenters by introducing new digital
tools.

Future
prospects
We anticipate somewhat weaker market growth in Europe over the
upcoming periods.
We foresee a continued strong market in Denmark, however, and
e-commerce has
good opportunities for growth. In our assessment, the
competition in Sweden and
Finland will persist. High production capacity in
both countries, combined with
a weaker Industry market and new players, exerts
pressure on gross margins.

In the fourth quarter, we will safeguard the
implementation of Inwido’s new
governance model to simplify and streamline the
Group. This should be viewed,
above all, in light of changing market conditions
and customer behaviours. By
assigning the units full responsibility for their
operations and profitability,
it will be possible to respond even faster in
each sub-market to further
increase customer focus and efficiency."

MALMÖ, 23
OCTOBER 2018

Håkan Jeppsson
President and CEO

Read the full report in the pdf
attached
For more information, please contact:
Inwido AB
Håkan Jeppsson,
President and CEO Phone: 46 (0)10-451 45 51 or 46 (0)70-550 15
17
Peter
Welin, CFO Phone: 46(0)70-324 3190 or 46(0)10-451 45 52
E-mail:
peter.welin@inwido.com
About Inwido
Inwido is Europe’s largest supplier
of windows and a leading door supplier. The
company has operations in Denmark,
Finland, Norway, Sweden, Austria, Estonia,
Ireland, Lithuania, Romania, Poland
and the UK, as well as exports to a large
number of other countries. The Group
markets some 20 strong local brands
including Elitfönster, SnickarPer, Hajom,
Outline, Tiivi, Pihla, Diplomat and
Sokolka. Inwido has approximately 4,400
employees and generated sales of
slightly more than SEK 6.4 billion in 2017.
The Group's headquarters are located
in Malmö, Sweden. For further information,
please visit www.inwido.com